it is true that developing countries like Sri Lanka needs to have more FTA with other countries to get the benefits of trading internationally, to minimise the deficit of the Balance of Payment in the overall budget.
We have FTA with countries such as India, EU, and so on. we need to built up more relationships with other nations with coutries toi get more benefits to our country while trading with other countries. example, with the US, China, Pakistan, Malasia, UK etc. not only trade pacts but also defence pacts to assists us when ever we need assistance from the global players in the world.
When the former Prime miinister Ranil Wickramnasinghe visited USA in nov 2003, our great l;ady who has won the wrath did a great thing which we still enjoy. it is that she took over three key portfolios and dissolved the parkiment on a latter day. that put the country backwards that she nows call foul play for what Mahinda rajapakshe did. for agreeing with JVP & JHU. only to defeat UNP's Ranil Wickreamasinghe and his far sighted poilicies which will enhance the development of our great country.
We have SAARC, SAPTA, GATT, BIMSTEC, G7 , ASEAN , OPEC , NAFTA, UN , IMF, WB, WTO to name a few of great trade agreements. where we benefit.
Basic rules of the General Trade agreemnts on Tariffs and trade.
- There should not be discrimination in trade.
- Domestic industry should be protected only through customs tariffs.
- Dumping band subsidies should not interfere with fair competetion.
- Tariffs should be reduced through multilateral negotiations and bound against subsequent increases.
Discrimination in Trade
- Cyrtail or restrict to help local industry
- quota in imports
- country preferance
Protection through tariffs
- imported items can be charged a higher tax in order toi protect local industry.
- However imports can not be restricted to protect local industry.
to be continued ....
